CFPB Gutted In Latest Trump Admin Move To Cut Government Waste

Russell Vought gutted the Consumer Financial Protection Bureau (CFPB) on Saturday, one day after President Donald Trump tapped him to serve as the agency’s acting director.

The Senate confirmed Vought to serve as the next head of the Office of Management and Budget on Thursday night before he was tapped to also lead CFPB on Friday. One of Vought’s first acts at the CFPB was to issue a broad freeze of operations, including on new rules, guidance, investigations, and stakeholder communication.

News: In Saturday night email obtained by RealClearPolitics, acting CFPB Director Russ Vought directs Consumer Financial Protection Bureau staff to issue no new rules, suspend effective dates of all final rules, and cease any new investigations: pic.twitter.com/TIeSjr0mMq

— Philip Melanchthon Wegmann (@PhilipWegmann) February 9, 2025

The Department of Government Efficiency, a team led by Elon Musk aimed at cutting government excess and honing operations toward Trump’s agenda, has targeted CFPB. Musk posted to X on Friday the message “CFPB RIP” with an emoji of a tombstone.

In addition to freezing its operations, Vought also cut off funding for the agency. The CFPB operates in a unique position relative to most of the government. Created under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the CFPB is funded directly from the Federal Reserve outside of the normal Congressional appropriations process.

“Pursuant to the Consumer Financial Protection Act, I have notified the Federal Reserve that CFPB will not be taking its next draw of unappropriated funding because it is not ‘reasonably necessary’ to carry out its duties,” Vought posted to X on Saturday night. “The Bureau’s current balance of $711.6 billion is in fact excessive in the current fiscal environment. This spigot, long contributing to CFPB’s unaccountability, is now being turned off.”

Pursuant to the Consumer Financial Protection Act, I have notified the Federal Reserve that CFPB will not be taking its next draw of unappropriated funding because it is not "reasonably necessary" to carry out its duties. The Bureau's current balance of $711.6 billion is in fact…

— Russ Vought (@russvought) February 9, 2025

Vought’s request was made official in a letter to Federal Reserve chairman Jerome Powell requesting $0 in funding for the CFPB in the third quarter of fiscal year 2025.

“I have determined that no additional funds are necessary to carry out the authorities of the Bureau for Fiscal Year 2025. The Bureau’s current funds are more than sufficient–and are, in fact, excessive–to carry out its authorities in a manner that is consistent with the public interest,” Vought wrote.

“In the past, the Bureau has at times opted to maintain a ‘reserve fund’ for financial contingencies. But no such fund is required by statute or necessary to fulfill the Bureau’s mandate,” he continued. “The Bureau’s new leadership will run a substantially more streamlined and efficient bureau, cut this excessive fund, and do its part to reduce the federal deficit.”

News: In letter to FED Chairman obtained by RealClearPolitics, Trump’s acting CFPB director @RussVought requests for Q3 of FY25 a grand total of… $0. pic.twitter.com/OeCoGmenJs

— Philip Melanchthon Wegmann (@PhilipWegmann) February 9, 2025